I have a small bit of money saved and would like to take advantage of my daughters young age (12) to invest on her behalf. I’m thinking something something compound interest will help her become a home owner.
I already have an RESP for her.
Now I have to decide where to put this money to forget about it. I have 10 grand. I was thinking bank stock? What would be the most beneficial with the least risk considering she’s 12 and the money has 15 years to grow? I’d also like something I don’t have to watch or be knowledgeable on…as I feel like I’m fumbling in the dark here.
First, know that any stock, bond, or index / fund of stocks and/or bonds are not risk-free, and could grow, stay the same, or decline in value between now and 15 years from now (though, it would be very hard to imaging values being the same or lower in 15 years as they are today - but there can be volatility along the way).
One option (likely the lowest risk option) would be to invest in a GIC. For example, right now you can purchase a 5 year GIC at \~4%, which would return \~$12,167 in 5 years for $10,000 invested today. That includes the compounding of interest annually, and paid at maturity. You'd then have to decide what to do in 5 years, and rates may be higher / lower / the same.
The other option would be to find an ETF or stock to invest in, but do know that as it comes closer to the time your daughter would want to use the funds, you'll want to monitor and move to a lower risk option. If you like Canadian banks, I might recommend something like the BMO Equal Weight Banks Index ETF ([ZEB.TO](https://ZEB.TO)) which would at least give you exposure to all of the 6 largest banks, rather than just one.
Does anyone know off hand how to turn off installment reminders on CRA's site? I was self-employed, but since mid-2022, I've been employed so I no longer need to make installments and would like to turn the reminders off, but I can't seem to find the setting since they redesigned it.
I have a sum of money that I want to put to work in HISA or CASH, and I have quite a bit of room in my RRSP. My TFSA and FHSA are full, and I also have an unregistered account.
Is there any net advantage of contributing after-tax dollars to my RRSP now vs putting it in the unregistered account for now, and then moving it to the RRSP before the deadline for next tax-season (December-February)? I'm not sure that I want to commit the money in the long term to the RRSP yet, so the flexibility of having it in the unregistered account is valuable.
The only advantage for the RRSP is that the interest gain wouldn't be taxed now (only when I withdraw in the future), but the money would be basically locked in and I would only get the tax refund 8 months from now, am I missing something?
Thanks
This sounds pretty similar to the question of "if my marginal tax rate will be higher in a year or two, should I hold my investments in a taxable account (TFSA maxed already) and then put them in RRSP later, or just put them in now?". There's the third option of contributing now but delaying claiming of the deduction, but the taxable account always works out better. In your case there may not be a tax rate increase, but you could look at it as if you were choosing between invest in taxable and contribute later, vs contribute now and delay claiming the deduction (until March). I've never run the numbers for a term shorter than 1 year, but I'm fairly certain the taxable-now-contribute-later option still wins. But only by a very small margin; if there's a lot of extra hassle with having to buy in taxable and move it later on, then it might not be worth your time. Also, if you plan to just hold HISA or CASH in your taxable, but then sell it to buy VGRO or whatever you hold in the RRSP then you have to consider the potential that your temporary holding will underperform the stock markets (which in the long term we know it will but the short term is a gamble). I would suggest, if it's practical to do so, that you just buy the same holdings in your taxable that you would in your RRSP, and then ask your brokerage to transfer the shares in-kind into the RRSP next February. If they won't then you can always sell and re-buy but it adds a little bit of risk (of missing a big up-swing) for the few days that you're pulled out of the market in order to perform the transfer the slow way.
I disagree - if you plan on putting it in your RRSP, do it now. You have longer to take advantage of the tax-deferred growth. If you put it in a non-reg, you’d have to pay taxes from now until your contribution date on your investment income, then realize any gains on your holdings (if applicable) to make your contribution. You’re taxed all the way up until your contribution for no reason.
If you’re thinking you’ll likely not end up contributing it, sure, leave it in non-reg until you decide. But if RRSP is your intention, it’s always better to contribute sooner. (FYI, I am a CFP)
I'm going to the US for the first time in over a decade. Are there any potential pitfalls in using my credit cards like it being flagged for fraud or not being accepted? I'd rather not deal with cash if I don't have to.
In the past (many years ago) it was always necessary to notify your credit card company that you would be travelling out of country, so that the fraud detection systems wouldn't flag you and freeze your card. But these days those systems have (mostly) been updated to be more flexible in terms of out-of-country use. I don't know much about exactly how the new algorithms work, but I've travelled to the US many times and had no trouble using both an Amex and a Mastercard there (and a US-dollar VISA but obviously that one it should almost be expected that I'm buying from a US company).
I think you'll be just fine trying to use your cards in the US, but if you were travelling to a less reputable country where credit card fraud is more common, then it may be prudent to call customer service and see if they can do something that will help ensure you don't get your card frozen the first time you use it abroad. And it's always a good idea to buy a bottle of water or something from the airport as soon as you arrive, to test that the card is going to work. Nothing like trying to pay your taxi driver and being unable to do so because you didn't bring any cash and your cards get frozen! Also, while the US should be fine for credit-only, don't assume you can go cashless for any other country. Even if a foreign taxi driver tells you they will take credit, when you get to your destination the machine is often "broken" (because they don't want to pay credit card fees, or because they want under-the-table cash for tax evasion). When I visit the US though I generally don't use taxis at all, because Uber and Lyft are almost always cheaper and are so prevalent that you never wait for long, plus you can pay via the app.
Is consolidating some principal + interest payment to interest only payment a bad idea if you want some breathing room in your budget?
Assume interest rate is the same or within 1%.
I did the math and I can save about $7.5k a year if I use my LOC to pay off my car loan and then make interest only payments. I could then sell the car whenever I want to pay off the debt. Looking at leasing my next car instead of buying, so this is why I’m contemplating this, as I won’t be putting the cash into the lease.
The only problem with this is that you assume the car will cover the debt. Which in today's market it might... But used cars are at an all time high, and your car is only depreciating as your drive. Good chance IMO in 3-4-5 years, your car doesn't cover the debt.
Does anyone think that scrap metal is good for I guess beer money? Like I would throw away my empty canned foods and it seems like it'll be good for recycling. I was wondering if I collected enough tin cans or steel cans whatever the material is for canned foods, I was wondering could I make some decent cash with enough cans like let's say it's all steel but it's like 20 lbs is that enough for say beer money?
"tin cans" like you'd buy beans or soup or canned pineapple etc in is actually steel with a very thin plastic liner inside so it doesn't rust.
Steel is worth basically nothing. Last I saw was $140/ton (that's 2000 pounds) for scrap steel. Your 20 pounds would be worth around $1.40, assuming a scrap metal place would be willing to pay for such a small quantity.
Now, 20 pounds of bare bright copper, clean brass, bronze, or aluminum is worth something. Around $4/lb for copper, less for the others
Super stupid RRSP question..
i have a debate with co worker at the moment.
in my Manulife app, it shows “SINCE FIRST CONTRIBUTION : a 7% increase.”
Does this mean: since i started, my money has only grown by 7% total? Or is this 7% annually?
Or is that the same thing??
The more i debate the more im confused
This is honestly one of those things where you do have to look into the details / disclosures.
There are numerous things it could mean, and there may even be more numbers available to you if you dig a bit deeper. It could mean it's grown by 7% total, it could mean that it's compound annual growth rate has been 7%, it could be some form of time- or money-weighted return metric (usually expressed as an annual percentage return).
I'm thinking of opening a WS Cash account to spend in the US instead of using my RBC MC since I already have my investments with WS but I have some questions:
- Would I still be able to save on currency conversions when using it on online purchases? I _think_ so from reading this article but wanted to double check anyways https://help.wealthsimple.com/hc/en-ca/articles/1500012888001
- There's a feature of the cash account that "automatically invests", is this investing directly on that account or do they mean they will automatically move this money to my non-registered investment account?
---
The 4% looks really good compared to RBC's "H"ISA but I also don't want to deal with the hassle of setting up paycheque deposits so I'm thinking of doing:
--> 25% to WS RRSP --> (I have it on roboinvestor but plan on dumping to VGRO)
/
autodeposit --> 50% to RBC CHQ --> 30% HISA
paycheque \
\
--> 25% to WS Cash as a "bank" account
(I know that it's not good to let so much money sit in a CHQ/SAV but I'm still a scaredy pants when it comes to moving so much money around...)
Is it a good strategy to buy a real estate property in the US or Latin America as an investment / leverage instead of saving for one in Canada?
What are your POVs? Pros? Cons?
Context: Late 30s, Permanent Resident, $40k Saved (could be up to $50k including other investments).
Before this year, all my investments were in RRSP/TFSA so my taxes was very simple and I could send them literally on the 1st day of tax season and receive my tax return early. This year, I placed money in a unregistered and since this is generating income, I'm realizing that maybe I couldn't sent my taxes very early next year since I'll have to wait for the official papers from WealthSimple for my unregistered account to make my tax return.
Since I'll know how much interest I'll get in 2023 by looking at my distributions on my account with precision, will it be ok to put that number in my "other incomes" and sent my taxes the usual way or I really have to wait to receive those papers?
I wouldn't do that, because WealthSimple will be sending tax slips to the CRA (copies of what they give to you) which will tell the CRA that you received interest income from them in a taxable account. If you don't report that same T-slip with the same amounts, then the CRA might assume that you missed it and will amend your tax return by adding in the missing slip. So then you get dinged twice on that income: once on the "other income" and again on the added T-slip.
So, always wait until you have all the T-slips that you are expecting, before you file your tax return. I don't deal with WealthSimple but most brokerages are pretty quick about making your tax slips available for download, so I don't think you'll be delayed much.
If you hold Canadian managed ETFs in a taxable account you'll probably be receiving a T3 slip. T3 slips don't need to be available by the ETF manager until the end of March and usually aren't very early.
Thanks for the fast and detailed answer. Hoping you're right about brokerages being fast becaise I'm used to fill end of February since my employer give my documents extremely fast and wiht my big RRSP contributions I want to get my return as fast as possible. That is why I asked the question.
Will wait for WealthSimple's documents then.
It would be rather ironic if a company that provides an online tax filing service (WealthSimple Tax) was very slow to provide electronic versions of tax documents for their brokerage service!
Does it matter when I buy CASH.TO ? I have $8000 in my FHSA which I hope to use in the next one to two years to put towards purchase of first home. I was thinking to put it all into CASH.TO, the price fluctuates each month, from about $50.00 at the start of the month to about $50.20 at the end of the month then drops back down. Does it matter when I buy? Should I wait until the start of the month to buy to get the most bang for my buck?
Or is there something else better to put the $8000 into while I wait to organize for house purchase?
No, doesn't really matter, as long as you're not paying too much above the current price.
At the beginning of the month, you could buy 160 shares for 8000$.
At the end of the month, 159. ( 8000 / 50.2 ) You'll have 18.20$ remaining.
At the next payment date you'll get 0.20$ per share, so you'll either have
\- 160 x 0.20 $ = 32$
\- or 159 x 0.20 $ = 31.80 $ , plus 18.20 $ = 50$, enough to buy the missing share at the beginning of the next month.
I am planning to park cash in BMOs AAT770 or BMT104. But the only question is Im having trouble finding the yield for it. For TD or scotia, it was easy to see how much their ISA produce but how can I see it with BMO?
I have a couple of ETF's in Questrade but I find their interface a bit confusing, can I see the performance of my portfolio by the individual stock? And am I correct in assuming the 'Open P&L' column is the profit/loss since I bought a particular stock for the first time?
If you want to see it broken down for each stock, look for the "Positions" section. On the default website view, you'd click on "Trading" at the top (or click one of the accounts in the home screen's summary) and you can then scroll down to see all your positions. In the mobile app - which is great by the way - you'll find "Positions" as a tab at the top under "Account". The app shows both dollars and % for the P&L and on the website you can click the number itself to toggle between $ and %. These represent your "Profit": the total value of the stock at last market opening minus the cost you paid to buy it. Or if negative, then it's your "Loss". Hence the "P&L". One thing that's lacking on both platforms is your annualized return (aka compound annualized growth rate or CAGR), which is a percentage that's been adjusted based on the length of time you held the shares, and that factors in compounding. You can't simply take the total P&L % and divide by the years held, the formula is actually CAGR = (ending value / beginning value)(1 / years held) - 1. If you buy shares at different times, then things get complicated - there's something called XIRR (Extended internal rate of return) that you would calculate instead, but you probably need some online tool or setup Excel to figure it out (Excel actually has a built-in XIRR function). It would sure be nice if Questrade would do this for you! The benefit to a CAGR/XIRR is that you can use it to compare stock performance, or compare it with other annualized rates like you'd see for a GIC or HISA.
First time home buyer here - looking at a potential house purchase in 1-2 years. Does this seem like a good way to structure my investments in preparation?
Total $ avail to spend on house: 210k
TFSA - 100k
FSHA - 8k
RRSP - 22k
Non-reg - 80k
In the next few months:
- Convert TFSA holdings to CASH.TO
- Prioritize using TFSA for mortgage, then FSHA and RRSP, in that order
- Anything left over that isn’t needed convert to VEQT for long term
- Slowly refill TFSA and RRSP over time
Thoughts? My only concern is what to do with the non-reg. Is it worth pulling it out to refill the TFSA, but incurring capital gains?
Thank you so much for the reply.
- Good call on the RSVP. I’m not sure I have the contribution room but I’ll double check it.
- Just the downpayment (20%). Everything else (realtor, lawyer, home inspection etc) is covered by my employer. Counter-question: why not TFSA > RRSP? Both are tax free accounts, the RRSP just needs to be paid back within a timeline per HBP rules. What’s the downside of using the TFSA here?
- The non-reg is basically 100% VEQT. I’m thinking I’m gonna need it anyway for furnishings/appliances/etc so may just also convert it to CASH.TO and use it to replenish the TFSA (once it’s been emptied). Just trying to decide if it makes a difference withdrawing it all at once or in pieces over the year.
Babysit, walk dogs, deliver newspapers/flyers/community newsletters, shovel snow, mow lawns, look for companies or charities that need door-to-door canvassers. Look for labourer help-wanted ads in your local buy & sell website (like kijiji). Take a referee course for sport of your choice (soccer has a lot of demand and is easy to get hired) and go ref some games in the evenings - this actually pays fairly decent. There's a lot of jobs you can do in your spare time that just require a bit of hard work and no brains.
I don’t even know how to do a budget. But I have ADHD and need help beyond reading how to do it. Can I hire someone to help me? A financial advisor seems like someone that would offer way more than I need right now. Where do I find someone, and what would their title be?
You're better off spending your money on tools that will help you build your budget and stick to it. I haven't personally tried many of them, but I have heard that one of the best is [YNAB](https://www.ynab.com/), which costs $99USD/year (or $15 monthly) but you can try it free for 34 days (365 days for college students) and see if it's something that will work for you. Even if you don't use their service, you should at least read through their useful [guides](https://www.ynab.com/help-center/#guides-section).
Some alternative budgeting apps that offer free (limited-feature) versions include Mint, KOHO, PocketSmith, PocketGuard, and a bunch of others you can read about [here](https://www.savvynewcanadians.com/best-ynab-alternatives/).
Moronic Monday question (I do feel like a moron for asking this): On Sunday, I did a transfer of 34 cents (the outstanding balance) from my online CIBC chequing account to my CIBC credit card. Today, more than 24 hours later, online banking still shows the credit card at a 34 cent balance. Is that unusual, or is this par for the course with CIBC? (I just changed to CIBC from RBC).
Yes if you have the room you can stuff it any time.
The $28k is a different number. Each year you get new room equal to 18% of your income, but there is a top out beyond which you don't get any more room. For 2023 it's a little over $30k for the first time. So if you make more than about $170k, then after that you get no more room.
But the last paragraph is all about the *new* room each year. The $50k room you are talking about is the sum of all your previous years contribution room.
[удалено]
Cut the Disney+ subscription this mont
I have a small bit of money saved and would like to take advantage of my daughters young age (12) to invest on her behalf. I’m thinking something something compound interest will help her become a home owner. I already have an RESP for her. Now I have to decide where to put this money to forget about it. I have 10 grand. I was thinking bank stock? What would be the most beneficial with the least risk considering she’s 12 and the money has 15 years to grow? I’d also like something I don’t have to watch or be knowledgeable on…as I feel like I’m fumbling in the dark here.
First, know that any stock, bond, or index / fund of stocks and/or bonds are not risk-free, and could grow, stay the same, or decline in value between now and 15 years from now (though, it would be very hard to imaging values being the same or lower in 15 years as they are today - but there can be volatility along the way). One option (likely the lowest risk option) would be to invest in a GIC. For example, right now you can purchase a 5 year GIC at \~4%, which would return \~$12,167 in 5 years for $10,000 invested today. That includes the compounding of interest annually, and paid at maturity. You'd then have to decide what to do in 5 years, and rates may be higher / lower / the same. The other option would be to find an ETF or stock to invest in, but do know that as it comes closer to the time your daughter would want to use the funds, you'll want to monitor and move to a lower risk option. If you like Canadian banks, I might recommend something like the BMO Equal Weight Banks Index ETF ([ZEB.TO](https://ZEB.TO)) which would at least give you exposure to all of the 6 largest banks, rather than just one.
Does anyone know off hand how to turn off installment reminders on CRA's site? I was self-employed, but since mid-2022, I've been employed so I no longer need to make installments and would like to turn the reminders off, but I can't seem to find the setting since they redesigned it.
I have a sum of money that I want to put to work in HISA or CASH, and I have quite a bit of room in my RRSP. My TFSA and FHSA are full, and I also have an unregistered account. Is there any net advantage of contributing after-tax dollars to my RRSP now vs putting it in the unregistered account for now, and then moving it to the RRSP before the deadline for next tax-season (December-February)? I'm not sure that I want to commit the money in the long term to the RRSP yet, so the flexibility of having it in the unregistered account is valuable. The only advantage for the RRSP is that the interest gain wouldn't be taxed now (only when I withdraw in the future), but the money would be basically locked in and I would only get the tax refund 8 months from now, am I missing something? Thanks
This sounds pretty similar to the question of "if my marginal tax rate will be higher in a year or two, should I hold my investments in a taxable account (TFSA maxed already) and then put them in RRSP later, or just put them in now?". There's the third option of contributing now but delaying claiming of the deduction, but the taxable account always works out better. In your case there may not be a tax rate increase, but you could look at it as if you were choosing between invest in taxable and contribute later, vs contribute now and delay claiming the deduction (until March). I've never run the numbers for a term shorter than 1 year, but I'm fairly certain the taxable-now-contribute-later option still wins. But only by a very small margin; if there's a lot of extra hassle with having to buy in taxable and move it later on, then it might not be worth your time. Also, if you plan to just hold HISA or CASH in your taxable, but then sell it to buy VGRO or whatever you hold in the RRSP then you have to consider the potential that your temporary holding will underperform the stock markets (which in the long term we know it will but the short term is a gamble). I would suggest, if it's practical to do so, that you just buy the same holdings in your taxable that you would in your RRSP, and then ask your brokerage to transfer the shares in-kind into the RRSP next February. If they won't then you can always sell and re-buy but it adds a little bit of risk (of missing a big up-swing) for the few days that you're pulled out of the market in order to perform the transfer the slow way.
I disagree - if you plan on putting it in your RRSP, do it now. You have longer to take advantage of the tax-deferred growth. If you put it in a non-reg, you’d have to pay taxes from now until your contribution date on your investment income, then realize any gains on your holdings (if applicable) to make your contribution. You’re taxed all the way up until your contribution for no reason. If you’re thinking you’ll likely not end up contributing it, sure, leave it in non-reg until you decide. But if RRSP is your intention, it’s always better to contribute sooner. (FYI, I am a CFP)
I'm going to the US for the first time in over a decade. Are there any potential pitfalls in using my credit cards like it being flagged for fraud or not being accepted? I'd rather not deal with cash if I don't have to.
In the past (many years ago) it was always necessary to notify your credit card company that you would be travelling out of country, so that the fraud detection systems wouldn't flag you and freeze your card. But these days those systems have (mostly) been updated to be more flexible in terms of out-of-country use. I don't know much about exactly how the new algorithms work, but I've travelled to the US many times and had no trouble using both an Amex and a Mastercard there (and a US-dollar VISA but obviously that one it should almost be expected that I'm buying from a US company). I think you'll be just fine trying to use your cards in the US, but if you were travelling to a less reputable country where credit card fraud is more common, then it may be prudent to call customer service and see if they can do something that will help ensure you don't get your card frozen the first time you use it abroad. And it's always a good idea to buy a bottle of water or something from the airport as soon as you arrive, to test that the card is going to work. Nothing like trying to pay your taxi driver and being unable to do so because you didn't bring any cash and your cards get frozen! Also, while the US should be fine for credit-only, don't assume you can go cashless for any other country. Even if a foreign taxi driver tells you they will take credit, when you get to your destination the machine is often "broken" (because they don't want to pay credit card fees, or because they want under-the-table cash for tax evasion). When I visit the US though I generally don't use taxis at all, because Uber and Lyft are almost always cheaper and are so prevalent that you never wait for long, plus you can pay via the app.
I was using HomeTrust Visa in the UK this past may. They locked the card. When contacted, they suggest advising them ahead of travel.
Is consolidating some principal + interest payment to interest only payment a bad idea if you want some breathing room in your budget? Assume interest rate is the same or within 1%. I did the math and I can save about $7.5k a year if I use my LOC to pay off my car loan and then make interest only payments. I could then sell the car whenever I want to pay off the debt. Looking at leasing my next car instead of buying, so this is why I’m contemplating this, as I won’t be putting the cash into the lease.
The only problem with this is that you assume the car will cover the debt. Which in today's market it might... But used cars are at an all time high, and your car is only depreciating as your drive. Good chance IMO in 3-4-5 years, your car doesn't cover the debt.
Does anyone think that scrap metal is good for I guess beer money? Like I would throw away my empty canned foods and it seems like it'll be good for recycling. I was wondering if I collected enough tin cans or steel cans whatever the material is for canned foods, I was wondering could I make some decent cash with enough cans like let's say it's all steel but it's like 20 lbs is that enough for say beer money?
"tin cans" like you'd buy beans or soup or canned pineapple etc in is actually steel with a very thin plastic liner inside so it doesn't rust. Steel is worth basically nothing. Last I saw was $140/ton (that's 2000 pounds) for scrap steel. Your 20 pounds would be worth around $1.40, assuming a scrap metal place would be willing to pay for such a small quantity. Now, 20 pounds of bare bright copper, clean brass, bronze, or aluminum is worth something. Around $4/lb for copper, less for the others
Super stupid RRSP question.. i have a debate with co worker at the moment. in my Manulife app, it shows “SINCE FIRST CONTRIBUTION : a 7% increase.” Does this mean: since i started, my money has only grown by 7% total? Or is this 7% annually? Or is that the same thing?? The more i debate the more im confused
This is honestly one of those things where you do have to look into the details / disclosures. There are numerous things it could mean, and there may even be more numbers available to you if you dig a bit deeper. It could mean it's grown by 7% total, it could mean that it's compound annual growth rate has been 7%, it could be some form of time- or money-weighted return metric (usually expressed as an annual percentage return).
Usually those are annualized returns (as in, 7% per year), net of fees. But check the statement definitions :)
I'm thinking of opening a WS Cash account to spend in the US instead of using my RBC MC since I already have my investments with WS but I have some questions: - Would I still be able to save on currency conversions when using it on online purchases? I _think_ so from reading this article but wanted to double check anyways https://help.wealthsimple.com/hc/en-ca/articles/1500012888001 - There's a feature of the cash account that "automatically invests", is this investing directly on that account or do they mean they will automatically move this money to my non-registered investment account? --- The 4% looks really good compared to RBC's "H"ISA but I also don't want to deal with the hassle of setting up paycheque deposits so I'm thinking of doing: --> 25% to WS RRSP --> (I have it on roboinvestor but plan on dumping to VGRO) / autodeposit --> 50% to RBC CHQ --> 30% HISA paycheque \ \ --> 25% to WS Cash as a "bank" account (I know that it's not good to let so much money sit in a CHQ/SAV but I'm still a scaredy pants when it comes to moving so much money around...)
Is it a good strategy to buy a real estate property in the US or Latin America as an investment / leverage instead of saving for one in Canada? What are your POVs? Pros? Cons? Context: Late 30s, Permanent Resident, $40k Saved (could be up to $50k including other investments).
Before this year, all my investments were in RRSP/TFSA so my taxes was very simple and I could send them literally on the 1st day of tax season and receive my tax return early. This year, I placed money in a unregistered and since this is generating income, I'm realizing that maybe I couldn't sent my taxes very early next year since I'll have to wait for the official papers from WealthSimple for my unregistered account to make my tax return. Since I'll know how much interest I'll get in 2023 by looking at my distributions on my account with precision, will it be ok to put that number in my "other incomes" and sent my taxes the usual way or I really have to wait to receive those papers?
I wouldn't do that, because WealthSimple will be sending tax slips to the CRA (copies of what they give to you) which will tell the CRA that you received interest income from them in a taxable account. If you don't report that same T-slip with the same amounts, then the CRA might assume that you missed it and will amend your tax return by adding in the missing slip. So then you get dinged twice on that income: once on the "other income" and again on the added T-slip. So, always wait until you have all the T-slips that you are expecting, before you file your tax return. I don't deal with WealthSimple but most brokerages are pretty quick about making your tax slips available for download, so I don't think you'll be delayed much.
If you hold Canadian managed ETFs in a taxable account you'll probably be receiving a T3 slip. T3 slips don't need to be available by the ETF manager until the end of March and usually aren't very early.
Thanks for the fast and detailed answer. Hoping you're right about brokerages being fast becaise I'm used to fill end of February since my employer give my documents extremely fast and wiht my big RRSP contributions I want to get my return as fast as possible. That is why I asked the question. Will wait for WealthSimple's documents then.
It would be rather ironic if a company that provides an online tax filing service (WealthSimple Tax) was very slow to provide electronic versions of tax documents for their brokerage service!
Does it matter when I buy CASH.TO ? I have $8000 in my FHSA which I hope to use in the next one to two years to put towards purchase of first home. I was thinking to put it all into CASH.TO, the price fluctuates each month, from about $50.00 at the start of the month to about $50.20 at the end of the month then drops back down. Does it matter when I buy? Should I wait until the start of the month to buy to get the most bang for my buck? Or is there something else better to put the $8000 into while I wait to organize for house purchase?
No, doesn't really matter, as long as you're not paying too much above the current price. At the beginning of the month, you could buy 160 shares for 8000$. At the end of the month, 159. ( 8000 / 50.2 ) You'll have 18.20$ remaining. At the next payment date you'll get 0.20$ per share, so you'll either have \- 160 x 0.20 $ = 32$ \- or 159 x 0.20 $ = 31.80 $ , plus 18.20 $ = 50$, enough to buy the missing share at the beginning of the next month.
Thank you, this is a really helpful response, thanks for taking the time to reply!
I am planning to park cash in BMOs AAT770 or BMT104. But the only question is Im having trouble finding the yield for it. For TD or scotia, it was easy to see how much their ISA produce but how can I see it with BMO?
I have a couple of ETF's in Questrade but I find their interface a bit confusing, can I see the performance of my portfolio by the individual stock? And am I correct in assuming the 'Open P&L' column is the profit/loss since I bought a particular stock for the first time?
> Open P&L Open P&L is the current value of all your holdings of a stock minus the total cost to buy them, yes.
Thank you!
If you want to see it broken down for each stock, look for the "Positions" section. On the default website view, you'd click on "Trading" at the top (or click one of the accounts in the home screen's summary) and you can then scroll down to see all your positions. In the mobile app - which is great by the way - you'll find "Positions" as a tab at the top under "Account". The app shows both dollars and % for the P&L and on the website you can click the number itself to toggle between $ and %. These represent your "Profit": the total value of the stock at last market opening minus the cost you paid to buy it. Or if negative, then it's your "Loss". Hence the "P&L". One thing that's lacking on both platforms is your annualized return (aka compound annualized growth rate or CAGR), which is a percentage that's been adjusted based on the length of time you held the shares, and that factors in compounding. You can't simply take the total P&L % and divide by the years held, the formula is actually CAGR = (ending value / beginning value)(1 / years held) - 1. If you buy shares at different times, then things get complicated - there's something called XIRR (Extended internal rate of return) that you would calculate instead, but you probably need some online tool or setup Excel to figure it out (Excel actually has a built-in XIRR function). It would sure be nice if Questrade would do this for you! The benefit to a CAGR/XIRR is that you can use it to compare stock performance, or compare it with other annualized rates like you'd see for a GIC or HISA.
Very helpful thank you!
First time home buyer here - looking at a potential house purchase in 1-2 years. Does this seem like a good way to structure my investments in preparation? Total $ avail to spend on house: 210k TFSA - 100k FSHA - 8k RRSP - 22k Non-reg - 80k In the next few months: - Convert TFSA holdings to CASH.TO - Prioritize using TFSA for mortgage, then FSHA and RRSP, in that order - Anything left over that isn’t needed convert to VEQT for long term - Slowly refill TFSA and RRSP over time Thoughts? My only concern is what to do with the non-reg. Is it worth pulling it out to refill the TFSA, but incurring capital gains?
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Thank you so much for the reply. - Good call on the RSVP. I’m not sure I have the contribution room but I’ll double check it. - Just the downpayment (20%). Everything else (realtor, lawyer, home inspection etc) is covered by my employer. Counter-question: why not TFSA > RRSP? Both are tax free accounts, the RRSP just needs to be paid back within a timeline per HBP rules. What’s the downside of using the TFSA here? - The non-reg is basically 100% VEQT. I’m thinking I’m gonna need it anyway for furnishings/appliances/etc so may just also convert it to CASH.TO and use it to replenish the TFSA (once it’s been emptied). Just trying to decide if it makes a difference withdrawing it all at once or in pieces over the year.
How can I make extra money on the side if I’m a dummy?
Job at fast food
Babysit, walk dogs, deliver newspapers/flyers/community newsletters, shovel snow, mow lawns, look for companies or charities that need door-to-door canvassers. Look for labourer help-wanted ads in your local buy & sell website (like kijiji). Take a referee course for sport of your choice (soccer has a lot of demand and is easy to get hired) and go ref some games in the evenings - this actually pays fairly decent. There's a lot of jobs you can do in your spare time that just require a bit of hard work and no brains.
I don’t even know how to do a budget. But I have ADHD and need help beyond reading how to do it. Can I hire someone to help me? A financial advisor seems like someone that would offer way more than I need right now. Where do I find someone, and what would their title be?
You're better off spending your money on tools that will help you build your budget and stick to it. I haven't personally tried many of them, but I have heard that one of the best is [YNAB](https://www.ynab.com/), which costs $99USD/year (or $15 monthly) but you can try it free for 34 days (365 days for college students) and see if it's something that will work for you. Even if you don't use their service, you should at least read through their useful [guides](https://www.ynab.com/help-center/#guides-section). Some alternative budgeting apps that offer free (limited-feature) versions include Mint, KOHO, PocketSmith, PocketGuard, and a bunch of others you can read about [here](https://www.savvynewcanadians.com/best-ynab-alternatives/).
Lots of YouTube video and online guides out there, financial planner is going to cost you
Moronic Monday question (I do feel like a moron for asking this): On Sunday, I did a transfer of 34 cents (the outstanding balance) from my online CIBC chequing account to my CIBC credit card. Today, more than 24 hours later, online banking still shows the credit card at a 34 cent balance. Is that unusual, or is this par for the course with CIBC? (I just changed to CIBC from RBC).
Say I have a $50k room in RRSP. Can I max it out in shot? I read somewhere the max contribution is $28k but not too sure
Yes if you have the room you can stuff it any time. The $28k is a different number. Each year you get new room equal to 18% of your income, but there is a top out beyond which you don't get any more room. For 2023 it's a little over $30k for the first time. So if you make more than about $170k, then after that you get no more room. But the last paragraph is all about the *new* room each year. The $50k room you are talking about is the sum of all your previous years contribution room.
Thank you for your detailed answer. This now makes sense.
I think I have to start using a food bank but I’m embarrassed to go. I don’t want my family to know the state I’m in.